Chart of the Day - Monday, May 24th, 2021

Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). The chart shows the US Dollar/Chilean Peso currency pair over the past 12-years (USD/CLP), along with an inverted chart of Copper futures. Chile is the largest Copper producer out there. As a result, the Chilean Peso is a good indicator for Copper prices. When the Chilean Peso is strengthening vs. the US Dollar, Copper prices tend to be rising and vice versa. In a comment to The Chart Report, Steve said, "A lot of people are expecting Copper to continue higher here. And I get it, it's in a strong uptrend and breaking out of a decade-long base. But this correlation is as tight as it gets, and as long as USD/CLP it's above 700 like it is now, Copper probably won't be able to continue much higher."